This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following products has high price elasticity of demand? A) Luxury goods, high-end electronics, and non-essential items. B) Necessities like food and water. C) Low-cost clothing. D) Generic household items. Show Answer Correct Answer: A) Luxury goods, high-end electronics, and non-essential items. 2. All of these are the top three most important factors in the economics of a business except: A) Customers. B) Competition. C) Political risk. D) Technology. Show Answer Correct Answer: C) Political risk. 3. Business profit is A) The residual of sales revenue minus the explicit accounting costs of doing business. B) A normal rate of return. C) Economic profit. D) The return on stockholders' equity. Show Answer Correct Answer: A) The residual of sales revenue minus the explicit accounting costs of doing business. 4. The world famous painting Mona Lisa by Leonardo da Vinci is an example of A) Perfectly elastic supply. B) Perfectly inelastic supply. C) Elastic supply. D) Inelastic supply. Show Answer Correct Answer: B) Perfectly inelastic supply. 5. Managerial Economics is a ..... A) Science. B) Science & Art. C) Art. D) None of above. Show Answer Correct Answer: B) Science & Art. 6. Market demand is the ..... summation of individuals' demands. A) Total. B) Vertical. C) Horizontal. D) Difference. Show Answer Correct Answer: C) Horizontal. 7. Factors of production are the A) Inputs for production. B) Output. Show Answer Correct Answer: A) Inputs for production. 8. Which of the following factors may explain diseconomies of scale? A) Increasing returns to scale of inputs. B) Specialization of labor. C) Indivisible inputs. D) Managerial inefficiency. Show Answer Correct Answer: D) Managerial inefficiency. 9. The long run is a period of time in which A) The firm is able to maximise total profit. B) The firm may want to build a bigger plant, but cannot do so. C) The quantities of all inputs can be varied. D) Economic efficiency is achieved. Show Answer Correct Answer: C) The quantities of all inputs can be varied. 10. The principle reasons behind economic problems A) Unlimited wants. B) Limited or Scarce of Means. C) Alternatives Uses of Means. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Goods in which the increase(decrease) in price will lead to an increase(decrease) in the demand of the other goods is called A) Inferior goods. B) Substitute goods. C) Normal goods. D) Superior goods. Show Answer Correct Answer: B) Substitute goods. 12. Quantity demanded and Price A) Inverse relationship. B) Positive relationship. C) No relation. D) None of above. Show Answer Correct Answer: A) Inverse relationship. 13. Considered as Economics applied to "Problem of Choice" . A) Applied Economics. B) Managerial Economics. C) Business Economics. D) Decision Making. Show Answer Correct Answer: B) Managerial Economics. 14. What is increase in total income called? A) Increase in expenses. B) Increase in income. C) Increase in profits. D) None of these. Show Answer Correct Answer: B) Increase in income. 15. The law of demand states that as the price increases then A) Quantity demanded increases. B) Quantity demanded decreases. C) Demand increases. D) Demand decreases. Show Answer Correct Answer: B) Quantity demanded decreases. 16. It is the second factor of production. A) Commercial Space. B) House and Lot. C) Land. D) None of the above. Show Answer Correct Answer: C) Land. 17. Change in demand because of determinant other than price is called as ..... A) Movement. B) Shift in demand. C) Elasticity of demand. D) Price inelasticity. Show Answer Correct Answer: B) Shift in demand. 18. When the price increases, demand ..... and supply ..... A) Increases, decreases. B) Decreases, increases. Show Answer Correct Answer: B) Decreases, increases. 19. AVC can fall even when MC is rising, provided: A) MC B) MC>AVC. C) MC=AVC. D) None of these. Show Answer Correct Answer: A) MC 20. Which among the following is concerned with maximization of profit and minimising cost? A) Economics. B) Managerial economics. C) Inventory management. D) None of these. Show Answer Correct Answer: B) Managerial economics. ← PreviousNext →Related QuizzesEconomics QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 5Managerial Economics Quiz 7Managerial Economics Quiz 8Managerial Economics Quiz 9Managerial Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books